Sustainability

Social Responsibilities

Social Responsibilities

Nurturing Employees

The Group recognizes that employees, with their unique skills and experiences, play a critical role in the development and manufacturing of high-quality sportswear products. To attract and retain the best talents, we provide our staff with competitive remunerations, comprehensive training opportunities and a welcoming workplace culture.

Furthermore, we extend our influence to make positive contributions to society. Being part of the community, the Group continued to actively participate in charitable acts, including in-kind donations, cash donations and voluntary services in 2022.

Staff Portfolio

Talented employees are the cornerstone to the long-term development and success of the Group. In 2022, we had approximately 9,800 employees and the breakdown is as follows.

2022 Staff Breakdown

Talent Retention
The Group abides by the “Labour Law of the People’s Republic of China” and the “Labour Contract Law of the People’s Republic of China,” ensuring the recruitment and employment processes are fair and consistent. We also fully support diversity and are committed to promoting equal employment opportunities in relation to personnel matters, including recruitment, training, promotion opportunities, benefits, transfer, and dismissal.

We have established a fair and competitive remuneration and welfare system. The Group provides equal employment opportunities and have zero tolerance towards discrimination or harassment against our employees due to their gender, age, ethnicity, nationality, marital status, or religion. Employee remuneration is determined based on qualifications, experience, nature of the work, performance, and market conditions. To ensure the competitiveness of our remuneration, we offer compensation packages that are considerably higher than the minimum wage level. The salary band is modified in accordance with market trends. In 2022, we offered an even more attractive compensation package as our bonus plan now comprises of profit-sharing bonus and incremental bonus, on top of retention bonus for key talents. These measures help to attract new talents while retaining highperformers within the Group.

A comprehensive Performance Management System is implemented to review employee performance and inform promotion and wage adjustment decisions. Through the system, employees regularly discuss their work performance with their supervisors. To determine whether the employee is eligible for promotion or wage adjustment, the Human Resources department will leverage these documented appraisal results and employees with excellent working performance were rewarded with bonuses.

We have established a Staff Position Management System to clearly assign each position, including grade, title, and job description. The system allows greater efficiency in operations and promotes employee utilization. Our updated recruitment management system and internal transfer procedures have optimized retention and improved our recruitment efficiency. Talent review is also a constant practice to identify performance gaps and high potential staff in the Group. We also offer a double track career pathway to technical professional and management professional, retaining our talents as they may internally transfer between professions and realize their career plan.

Employee turnover in 2022

Child and Forced Labour
The Group respects labour rights and complies with labour standards to foster a positive work atmosphere. Our Staff Handbook covers topics that include compensation and dismissal, recruitment and promotion, working hours, rest periods, equal opportunity diversity, preventing child and forced labour, and other benefits and welfare issues. It effectively promotes an inclusive and transparent workspace, ensuring employees are not discriminated against at work due to gender, age, ethnicity, nationality, marital status, religion, etc.

The Group abides by relevant laws and regulations prohibiting the employment of child and forced labour in all of its operations. We perform stringent checking and control procedures in the selection and on-boarding processes to ensure no underage labour is hired. Regular reviews on our employment practice are also conducted to ensure we operate fairly. We were not aware of any material non-compliance with law and regulations regarding labour standards during the reporting period.

Beyond our own operations, the Group has extended our efforts to build an equal and inclusive working space across our supply chains. The Group assesses the basic labour rights requirements and employees’ accommodation and catering during the potential and existing supplier evaluation to protect employees’ legitimate rights and interests. In 2022, we did not observe any incident of child or forced labour during our supply chain evaluation exercises.

Labour Health and Safety
It is our utmost priority to safeguard the health and safety of our employees who are valuable assets to our businesses. We manage and reduce occupational health and safety risks through the implementation of the ISO 45001:2018 Occupational Health and Safety Management System (OHSMS). The Group also complies with the relevant standards, laws and regulations to devise detailed standard operating procedures, working guidelines, and manual, providing guidance on the proper work procedures and processes.

We strive to eliminate occupational hazards that threaten the health and safety of our employees. To realize our commitment, we have in place targets, standard procedures, and emergency response plans for identified risks to promptly remove potential safety hazards. We also regularly review our OHSMS to ensure preventive measures are effective and corrective measures are properly executed.

The Group set up the Occupational Health and Safety Committee to scrutinize and periodically report the Group’s health and safety performance. At each shift, a professional health and safety officer is present to inspect whether frontline workers act in accordance with our safety procedures during the manufacturing process. All workers also receive a safety briefing before beginning each shift and a summary session after the shift to report any potential safety hazards observed during the shift. This practice serves as an effective routine reminder to our employees to maintain a safe working environment. In addition, we have organized internal fire safety knowledge competitions to raise workers’ awareness of workplace risk and acquire fire response knowhow. Billboards and LED display screens are set up in offices and factories to keep employees abreast of newest laws and regulations regarding fire protection, food safety, and workplace safety.

During the year, we enhanced the fire-fighting facilities in our factories and storage facilities and installed electric fire monitoring system to avoid fire accidents at workplace. The Group also introduced intelligent production equipment, such as automatic cutting machines and computerized sewing machines, to minimize occupational risks arising from our productions.

To ensure sufficient health and safety measures are in place, we have engaged a third-party evaluation agency to evaluate our production procedures and formulate preventive measures based on the findings. There was no major safety risk identified in the assessment during the year.

We are not aware of any non-compliance with laws and regulations in 2022 that had a significant impact on the Group with respect to occupational health and safety. Among the 28 injuries that occurred during the year, most of them were commuting accidents that occurred during the commute to and from work. All cases were reported to the local authorities for occupational injury assessment and follow-up actions.

Potential safety hazards

Occupational health and safety performance in 202213

13 Work-related injuries reported refer to cases reported to the local Human Resources and Social Security Bureau for an occupational injury assessment. The lost day figure reported is the aggregate of the work-related injury leave periods indicated by the assessments.

Employees’ health and wellbeing training
Besides setting up management systems and working procedures, the Group provides free annual health checks to our employees, identifying potential health issues and boosting positive employee morale in the workplace. The Group also conducted additional occupational health examinations for workers in special positions during the year.

To maintain a high level of health and safety awareness, we regularly conduct emergency drills as refresher training which allowed our employees to immediately correct response to any accidents, enhancing their preparedness and flagging potential shortages in emergency response plans. We also provide work safety and work injury prevention training to new joiners, internal transfers and return to work staff, minimising the incidence of workplace hazards. The Group’s management level is also gathered to analyse cases of accidents, identify reasons for happening and devise preventive measures.

We strongly support the health and well-being of our employees. To enhance wellness beyond their roles and responsibilities, we conduct health awareness training sessions to provide health tips for our employees on topics such as cold prevention and emotional management.

Training and development

We are determined to become an outstanding employer and allow our employees to reach their full potential. Emphasis been placed on training and development programmes to equip employees with practical skills and help their alignment with our corporate values.

Overall trainings for the Group in 202214

Average training hours by function in 2022

14 Included employees who left the Group during the reporting period.

We continue to support our employees’ personal and career development through our talent development centre — the Xtep Talent Centre. A wide range of courses is offered to improve the capability and efficiency of our staff via the three departments and one online training platform within the centre. Based on identified training needs, professional training plans catering for different employment categories are formulated and implemented.

The structure of the Xtep Talent Centre and the number of courses in each faculty are as below:

Furthermore, we have fostered our collaboration with education institutions to cultivate new talents in the sports apparel industry. During the year, we successfully completed school-enterprise cooperation with 10 colleges and universities, developing fresh and specialized talents needed by the Group’s marketing team, supply chain and factories. Our ongoing collaboration with Beijing Institute of Fashion Technology and Jiangnan University has also seen great results. A new research platform was developed through joint efforts and a presentation session on final sportswear design by the college students will be held in future procurement conference. We will continue engaging with schools proactively to explore new potentials of the young adults and our prospective employees.

Employee’s engagement, leisure and welfare

To promote employees’ morale and loyalty, the Group introduced a holistic welfare system encompassing a wide range of additional benefits alongside their standard benefits packages, including social insurance, paid holidays, and free medical check-ups. We also provide corporate subsidies such as daily meals, transportation, and accommodation subsidies.

We recognize that a healthy work-life balance is vital to our staff’s physical and mental well-being. Therefore, we have organized an array of open spaces for recreational and leisure activities for different staff interest groups, relieving their stress and enhancing their enjoyment at work.

Contributing to the society

Building our running ecosystem
Xtep strives to contribute to society’s betterment and actively participate in the communities where we operate. We strive to cultivate vigour and vitality in the community by adopting marketing strategies that encompass marathon running event sponsorships and sport celebrity endorsements. We also invest heavily in our running product innovations to foster and strengthen our running ecosystem and promote a healthier lifestyle.

Xtep Running Clubs (XRCs)
With rising health awareness and the emerging popularity of running in Mainland China, the Group has accelerated the openings of the XRCs to create value for more than 1.7 million Xtep Runners Club Members. As at 31 December 2022, there were 49 XRCs in Mainland China.

XRCs have become a pivotal part of Xtep’s running ecosystem through the provision of one-stop professional running services, including running consultation, running group support, mobile device charging, bag storage, and shower facilities. They foster the smooth integration of running into people’s daily lives with enhanced accessibility to supporting services and tools. In addition, the XRCs has enabled us to perform targeted selling of our products and served as an effective platform for receiving customer feedback.

Running event sponsorship
Xtep is dedicated to promoting public health through the sponsorship of large-scale running events and marathons. Numerous international and large-scale sporting competitions were called or postponed in the first half of 2022 due to a sudden surge in COVID cases in Mainland China. In the second half of 2022, selective physical marathons and running events were resumed when the outbreak was more effectively controlled. During the year, we sponsored five physical marathons in Mainland China.

Donations and charity events
We are committed to taking up our corporate social responsibility and spreading positive impacts to the community through engagements to help build a thriving community. The Group proactively invests in community programmes, collaborates with local charitable organizations, and encourages our staff to participate in volunteer activities. In 2022, the China Space Museum announced a strategic partnership with Xtep Kids as we jointly organized a popular science charity event to encourage youths to pursue their dreams. Continuing our contribution to society, we donated over RMB70 million worth of sportswear and cash donations to the community during the year.

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